Trump Drops Bessent from Fed Chair Race, Says He “Wants to Stay Put”

President Donald Trump says Treasury Secretary Scott Bessent is officially out of the running to replace Jerome Powell as head of the Federal Reserve — not because of politics, but because Bessent simply doesn’t want the job.

“I love Scott, but he wants to stay where he is,” Trump said during a Tuesday interview on CNBC. “I asked him just last night, ‘Is this something you want?’ and he said, ‘Nope, I want to stay where I am.'”

With Bessent off the list, Trump said he’s now eyeing four candidates to lead the Fed — a shortlist that includes two familiar names: former Fed Governor Kevin Warsh and White House economist Kevin Hassett. The other two? Still a mystery.

Trump has made no secret of his disdain for current Fed Chair Jerome Powell, whom he appointed in 2017 and later came to regret. He’s taken frequent jabs at Powell for not cutting interest rates, calling him everything from “a numbskull” to “a complete moron.”

Despite the insults, Powell has held firm. The Fed left rates unchanged last week, citing economic uncertainty. But not everyone agreed — two Fed officials actually voted in favor of a rate cut. One of them, Christopher Waller, is also rumored to be on Trump’s list of potential replacements.

And just days ago, Fed Governor Adriana Kugler announced she’s stepping down early, giving Trump a shot to fill the seat now rather than in January when her term officially ends. He hinted that whoever he picks could not only serve temporarily — but potentially become the next Fed chair.

“A lot of people say, ‘Why don’t you just pick the person who’s going to head up the Fed?’ That’s a possibility too,” Trump said.

With interest rates still high and inflation concerns lingering, the Fed chair pick is becoming one of the most closely watched decisions of Trump’s second-term campaign. Lower interest rates could help Trump politically by easing pressure on mortgages, credit cards, and loans — but economists warn they could also fuel inflation if handled too aggressively.

Trump says he’ll announce Kugler’s replacement “very shortly.” Whether that person becomes the “shadow chair” in the lead-up to Powell’s departure in May 2026 is still up in the air.

But one thing’s clear: Trump’s not wasting any time reshaping the Fed — and he wants someone in the top seat who won’t hesitate to slash rates.

With input from CNN, the New York Times, the Financial Times, Axios, and CNBC.